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ABN Amro Scales Back Diamond Lending
May 21, 2018 8:16 AM
By Rapaport News
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RAPAPORT... ABN Amro is terminating its diamond and jewelry lending
business in the US and the United Arab Emirates (UAE), the Amsterdam-based bank
said.
The lender decided to end its services to the US industry
due to its “very small portfolio,” a spokesperson for the company said Monday.
The bank will also close its office in Dubai for diamond and jewelry clients as
part of a move to end its overall presence in the UAE, the spokesperson added. The group made the decision on May 14, and aims to wind down the New York office by the end of 2018, before closing the Dubai activities at a later stage.
“We are in close contact with our diamond and jewelry
clients in these locations to find alternative solutions,” the Dutch bank continued.
“ABN Amro will continue to manage its diamond and jewelry client portfolio in
Belgium and Hong Kong, with a focus on existing clients, and work to
further improve the risk profile of those portfolios.”
ABN Amro has reduced its exposure to the diamond industry in
recent years, it said. The company recorded $48.1 million (EUR 41 million) of
impairments in the first quarter due to “challenges” in the sector, it noted in
a presentation earlier this month.
“The diamonds and jewelry portfolio has declined over
the years, and continues to face challenging market circumstances,” the lender
stated.
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Tags:
ABN Amro, Banking, Banks, Belgium, credit, Dubai, finance, Hong Kong, lending, Rapaport News, the United Arab Emirates, uae, US
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